Gross sales were up at both companies, with John Lewis rising 3 percent and Waitrose climbing 8.6 percent.

The large drop in operating profits for John Lewis was blamed on pension changes, maintaining high standards in goods and services, and opening three new stores, including one at Westfield Stratford City mall.

Mayfield remained confident about the year ahead.

"Trading conditions are still difficult and consumer confidence subdued. Despite that, we are continuing to grow faster than the market," he said.

"We are prepared and have shown that we can trade well through these conditions.

"The Queen's Diamond Jubilee and the London 2012 Olympic and Paralympic Games will provide a lift for consumers and I am cautiously optimistic that trading conditions may improve later this year."